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Home Loans – Requirements and Eligibility

When you have made up your mind to take a home loan, it is important to note down all the eligibility conditions. You need to determine your repayment capacity and review your monthly income/surplus. The higher the monthly disposable income the higher the loan amount you can be given.

The primary requirements are:

  • Aged between 18-60 years
  • Salaried or self employed individual with a steady income
  • Earning has to be more than minimum income quoted by the banks

The other factors that qualify you to take a loan are:

  • Monthly Income: Bank needs proof that they have at least 50% of your income ready to pay the EMIs
  • Other Loans taken: Other loans taken should be cleared as this will directly affect the total loan amount.
  • Down payment: The bank/lender will not give you the total amount. It is usually 80% and 20% has to be mobilised on your own.

List of Documents Required

  1. Filled and signed application form along with a recent photograph.
  2. Identification proof and residence proof, that can be your PAN Card and for residence proof, you need to provide a copy of your passport/driving license or any of the latest utility bill.
  3. Cheque for the processing fee.
  4. Bank statements of the previous 6 months.

Besides these, there are also a few other documents you need to provide depending on whether you are a salaried or a self-employed professional.

Salaried professionals need to provide their pay-slips for the last three months along with their Form 16 or Income Tax Returns (ITR) filing.

Self-employed professionals, on the other hand, need to provide proof of education qualification certificate and proof of their business’ existence. Apart from this they need to provide proof of ITR for the previous three years which should also include the computation of income. Lastly, they need to provide a CA audited/certified balance sheet and profit-loss account for the previous three years.

Now that you know the eligibility criteria for getting home loans, you can make your dream property into reality.

Divya Patwal


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